Medicare supplement policies totaled about 14 million last year, according to CSG Actuarial, and the market continues to grow, creating opportunities for insurers. Medigap sales are attractive to agents because commission recurs as policies are renewed, sometimes repeatedly for decades, experts say.
Return-of-premium term life insurance, which returns premiums to people who outlive the term, can be a good investment, personal-finance experts John Schneider and David Auten write. The main advantage is that policyholders get money back if they don't die, while the main disadvantages are that the insurance costs more than regular term life insurance and that premiums earn no interest, Schneider and Auten write.
Divorcing parents often forget they may need to sort any 529 college-savings accounts they have opened for their children, says attorney Jennifer Guimond-Quigley, who notes there is a common misconception that the account is owned by the child. She says that such accounts don't have to be split, but the divorce judgment should spell out what will happen to the fund if the child doesn't attend college.
A Morningstar report analyzed how changes such as saving more, delaying retirement and lowering living standards could boost Americans' retirement outlook. The report found that saving at least 6% of income and waiting to retire until age 67 would leave 71.2% of the working population with enough money for retirement under normal market conditions, compared with 25.6% currently.
The world's reinsurers have made use of longevity swaps to manage an estimated $60 billion in annuity risk and other longevity-based obligations, according to a report from S&P Global. Analysts at the ratings firm expect the appetite for longevity swaps among life reinsurers to grow.
The S&P 500 and the Nasdaq composite shot up to record-high closes as traders reacted to news the US and Mexico had agreed to an overhaul of the North American Free Trade Agreement. It was the second consecutive session in which the benchmarks set records.
Narrowing of the spread between three-month and 10-year US Treasury yields might indicate an increasing risk of recession, according to a study by the Federal Reserve Bank of San Francisco. Some central bank officials have argued the Fed should stop raising interest rates because of the risk of yield-curve inversion, which usually precedes a recession.
Four congressional Democrats have written Health and Human Services Secretary Alex Azar and Centers for Medicare & Medicaid Services Administrator Seema Verma to urge them to explain how they plan to improve Affordable Care Act markets, after the release of a Government Accountability Office report showing the Trump administration has fared poorly in managing open enrollment.
An advisor should compare two financial plans as objectively as possible, writes certified financial planner Joe Elsasser. He offers three benchmarks to help advisors determine which financial plan may be right for a client.
Financial advisors must bridge the gap between financial literacy and cyberliteracy with clients, writes Mitch Cook of Unified Trust. Ways to do that include using data to inform an educational approach, aggregating resources and simplifying tasks when possible, he writes.
NAIFA has launched the NAIFA Learning Center, a virtual, on-demand video-based platform that builds financial advisors' confidence by enhancing their knowledge of financial products and by clarifying the habits and skills they need to build meaningful client relationships. See more information.